Software-as-a-service (SaaS) finance company Arc has closed a Series A round for $20 million, to go toward growth for its treasury and software products, a press release said Tuesday (Aug. 16).
The company’s products help startups access and manage capital while keeping equity. It was founded in January on a belief that startups deserve a funding alternative to debt or equity dilution.
The company has also recently begun offering more FinTech tools with the debut in June of Arc Treasury, a cash management account that lets startups access instant deposits, free money movement, spend control and more, outside of the usual legacy financial institutions.
In addition, the company also offers programs for collecting revenue for upfront capital, and letting startups analyze cash burn.
Don Muir, Arc’s co-founder and CEO, said the company wanted to allow startups to build more revenue and deposit the funds into a FDIC-eligible account.
“This capital injection will help us build and scale Arc Treasury to meet the digital banking needs of a new generation of software-driven businesses,” he said.
The round was led by Left Lane Capital, while other investors included NFX, Y Combinator, Clocktower Technology Ventures, Torch Capital, Atalaya, Bain Capital Ventures, Soma, Alumni Ventures, and Dreamers VC.
PYMNTS wrote about Arc’s initial $161 million in funding from January this year.
Read more: SaaS Funder Arc Launches With $161M
In a news release, the company touted a partnership with Stripe, saying it wanted to build a FinTech solution “where software founders can borrow, save and spend on one comprehensive digital platform.”
Arc said that with the great number of cloud services, the innovation in SaaS companies had outpaced funding for them.
“We’re on a mission to help startups grow,” Muir said in the announcement. “Arc provides SaaS startups with the funding alternative they deserve, empowering founders to scale without selling an ownership stake in their business or risking insolvency with legacy credit products. Arc was purpose-built for software founders.”